Riyad REIT earns SAR 12.5M from selling Al Izdihar district property

Logo of Riyad REIT Fund

Riyad REIT Fund sold the Al Izdihar property in Riyadh’s Al Izdihar district on Dec. 1 for SAR 47 million, excluding real estate transaction tax, Riyad Capital, the fund manager, said in a statement to Tadawul.

The fund acquired the property in 2015 for SAR 38 million. According to the latest valuation reports, the asset’s average valuation stood at SAR 45.3 million, while its book value amounted to SAR 34.5 million. As a result, Riyad REIT will book a profit of SAR 12.5 million.

The property comprises office spaces and retail showrooms and had an occupancy rate of 98% as of the sale date. It generated rental revenue of SAR 3.9 million over the trailing 12-month period ended on the sale date.

Riyad Capital said the sale will give the fund greater financial flexibility to improve its financial position and enhance overall asset performance.

The transaction proceeds will be used for several purposes, including but not limited to reducing the fund’s financial liabilities, as well as improving the quality of existing properties. This is expected to increase the fund’s returns and enhance its performance overall.

There is no related party involved in this transaction, the fund manager said.